Bunds fulfilled the prediction yesterday and up we came. We have fallen shy of the 136.05 target, but we have at least now made the break above the neckline of this inverse H&S pattern and we should still now be able to trade higher…
We are a little overbought on the short term charts therefore we may stall initially in the 135.27 area but we would be in a good position to trade higher if broken. Look for dips early in the session to
ease s/t overbought scenario, but we would like to be able to buy into weakness as med term charts still point higher…
We look for 134.65 to contain any downside moves, and we are buyers here, stops below 134.37. Above 135.27 and we should be able to fulfil inverse H&S target of 135.05 quite quickly.
Bobl:
Bobl has a good day yesterday, holding 122.49 and coming to target 123.35 quite quickly.. Good close and there is nothing to stop us trading higher this morning.
We look to 123 now to contain the downside and a break above 123.35 would have further bullish implications and we would see the market rally to 123.63/68 if above 123.35. Here we would look to cover all long positions. This is only because we would be a little overbought on the short term charts. We would however expect further strength once the overbought scenario has been addressed..
Now as stated we have support at 123.00. If we lose 122.90 look for a little bit more on the downside with declines then looking towards the 122.49 support.. Once more we are covering shorts to here, re-instating longs, keeping stops below 122.37.